Luxury Home Sales Rebounding In Phoenix Area

by Las Sendas Homes on December 3, 2012

Metro Phoenix’s luxury home market appears to be recovering.  New data shows higher end homes in the northeast communities are selling at the fastest rate since the boom year of 2006.

A monthly report produced by Scottsdale based Walt Danley Realty and Arizona Real Estate analyst Mike Orr shows home sales priced more than $500,000 in Scottsdale, Paradise Valley, Fountain Hills, Rio Verde, the Biltmore area, Cave Creek and Carefree climbed 30% in October over September’s sales rate.  Also, 82% of the high end home sales were regular deals and not pre-foreclosures or short sales.  In October 2011, 67% of luxury sales in those communities were regular transactions.

metro Phoenix home prices reboundingThere are 1,866 houses for sale priced at over $500,000 in the northeast valley. Last year in October, there were 2,014. In September, 228 luxury homes in those communities sold, compared with 169 in September 2011.

As in the rest of the housing market, the number of short sale and foreclosure homes that can drag down values finally have dropped.  Metro Phoenix’s affordable end of the housing market began recovering a year ago.

Underwater Mortgages
The number of metro Phoenix homeowners with negative equity has fallen.  That’s not too big of a surprise because foreclosures are down, and the area’s median home price has climbed nearly 40% in the past year.

Zillow’s third quarter report shows 45.5% of the region’s homeowners are under water, compared with 51.6% in the second quarter.  Many Arizona real estate analysts still think the Zillow figure is high.

One zip code, 85043 in south Phoenix, has the highest rate of homeowners with negative equity in the region.  Nearly 74% of the people with mortgages in that area owe more than their house is worth.  Nationally, 30% of all homeowners with mortgages are under water.

Fastest Selling
The typical home for sale in metro Phoenix is selling within 47 days, according to new data from Realtor.com.  That ties the region with San Jose as the seventh fastest moving housing market.

The top eight markets for fastest moving inventory are: Oakland, 21 days; Stockton California, 26 days; Sacramento, 32 days; Denver, 40 days; San Francisco, 44 days; Fresno California, 44 days; Phoenix, 47 days; San Jose, 47 days.

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